Litigation
Jun. 29, 2013
Tax-deductible punitive damages may soon be history
Corporations forced to pay punitive damages are allowed to discount 100 percent of the money from their taxes. But that loophole could close if a bill that passed the state Assembly Thursday maintains momentum.
By Chase Scheinbaum
Daily Journal Staff Writer
Corporations forced to pay punitive damages are allowed to discount 100 percent of the money from their taxes. But that loophole could close if a bill that passed the state Assembly with a 54-24 vote Thursday maintains momentum.
The bill, AB 458, cleanly split Democrats and Republicans in the Assembly. It is now headed for the Senate.
The tax write-off is not found in Internal Revenue Service code, but stems ...
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